Still looks more like a sideways consolidation phase; maintain long positions. The precious metal traded in a relatively wide range in the latest session – between USD1,415.70 and USD1,427.60. This was before it settled slightly higher by USD1.40 at USD1,419.90. Based on the commodity’s price movement over the past two weeks or so, chances are still high that it is in the midst of developing a multi-week sideways consolidation phase. This is meant to correct its previous upward move which reached an overbought Daily RSI reading in the final week of June. Maintain our positive trading bias.

In the absence of negative price actions that may indicate the risk for a deep retracement is developing, we retain our recommendation for traders to stay in long positions. We opened these positions at USD1,333.60, which was the closing level of 5 Jun. For risk management purposes, a stop-loss can be placed at the breakeven mark.

Immediate support is pegged at USD1,336.60, which was the low of 17 Jun. This is followed by USD1,300, or the next round figure. Moving up, the immediate resistance is set at USD1,432.90, ie the high of 28 Aug 2013. This is followed by the USD1,500 threshold.

Source: RHB Securities Research - 16 Jul 2019